Hunt replaces Kwateng, scraps most tax cuts

On Friday, UK PM Liz Truss fired Chancellor (Finance Minister) Kwasi Kwateng because of growing outcry over massive tax cuts he had proposed which caused an economic crisis, crashed bond markets and sent the GBP to an all-time low against the USD..

Kwateng had been on the job for less than 6 weeks.

Replacement Chancellor Jeremy Hunt today scrapped most of Kwateng's tax cuts and slashed the government's energy support package.

Bonds and sterling rallied following Hunt's speech delivered at 11 AM UTC today, and the Bank of England stopped buying bonds.

The only tax cuts proposed by Kwateng that have survived Hunt's changes are a 13B GBP cut to national insurance and a 1.5B GBP cut to stamp duty.

Kwateng's "energy price guarantee" to consumers and businesses will be replaced by "more targeted measures" in April 2023.

A new budget is expected to be finalized by 31 October.